Your honey isn't bad, it has crystallized. Heat it gently and it will turn back into the golden liquid it once was.
Just be gentle, because if you heat the honey too vigorously, it will get a scorched flavor. You can place the jar in a pot of hot water (not over the stove), scoop out the honey and, on your microwave's lowest setting, warm it only to the point where it is slightly melted around the edges; let it stand at room temperature to complete the process.
For a collection of honey recipes, see 7 Ways with Honey.